Electronic Arts Inc. (EA) intrinsic value & 10-year financials
Electronic Arts Inc. (EA) has a Graham intrinsic value of $34.58 per share. Over the last 10 fiscal years revenue grew 5.0% a year to $7.5B, with an average return on invested capital of 23.4%.
- Graham intrinsic value
- $34.58
- Revenue (FY2026)
- $7.5B
- Revenue growth (10-yr CAGR)
- 5.0%
- ROIC (10-yr avg)
- 23.4%
- Free cash flow (FY2026)
- $2.3B
EA 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2026 | $7.5B | $887.0M | $3.51 | $2.3B | 15.4% | 20.0% |
| FY2025 | $7.5B | $1.1B | $4.25 | $1.9B | 20.4% | 22.6% |
| FY2024 | $7.6B | $1.3B | $4.68 | $2.1B | 20.1% | 24.3% |
| FY2023 | $7.4B | $802.0M | $2.88 | $1.3B | 17.9% | 15.6% |
| FY2022 | $7.0B | $789.0M | $2.76 | $1.7B | 16.1% | 20.7% |
| FY2021 | $5.6B | $837.0M | $2.87 | $1.8B | 18.6% | 26.0% |
| FY2020 | $5.5B | $3.0B | $10.30 | $1.7B | 26.1% | 37.6% |
| FY2019 | $5.0B | $1.0B | $3.33 | $1.4B | 20.1% | 19.0% |
| FY2018 | $5.2B | $1.0B | $3.34 | $1.6B | 27.8% | 23.9% |
| FY2017 | $4.8B | $967.0M | $3.08 | $1.3B | 25.3% | 24.1% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Electronic Arts has demonstrated mature, steady growth, with revenue compounding at 5.0% annually over the past decade.
Electronic Arts has earned high returns on invested capital, averaging 23.8% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, Electronic Arts shows that management has aggressively returned capital to shareholders by retiring 19.4% of outstanding shares.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Electronic Arts is modeled at 1.5% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $34.58 per share.